On Thursday, September 26, gold prices broke an all-time high and reached $2,685.58 per ounce.
Points of attention
- Gold prices reached an all-time high of $2,685.58 per ounce on expectations of interest rate cuts by the US Federal Reserve.
- Silver prices also surged to their highest level since 2012, driven by increased industrial demand in China.
- The collapse of leading companies' shares caused a massive divestment of assets, leading to a rise in gold prices as investors sought safe-haven investments amidst recession fears.
- Investors are closely monitoring the Federal Reserve's decisions and economic indicators for further insights on gold and silver price movements.
- Expectations of lower interest rates in the US and uncertainties in global markets continue to fuel the rally in precious metal prices.
What is known about the reasons for the rapid increase in gold prices
According to the journalists of the publication, gold prices jumped up against the background of expectations for additional reduction of interest rates by the US Federal Reserve System.
Silver also reached its highest price since 2012.
Specifically, silver rose 2.8% to $32.71 an ounce on Thursday, extending its gain this year to 37%.
The rise in the price of silver began against the background of the potential for greater use of this metal by China in its own industry.
Traders will analyze Fed Chairman Jerome Powell's speech at the 10th Annual US Treasury Market Conference.
US data, including a measure of personal consumption expenditures and jobless claims, due out this week, could provide further clues to the Fed's possible easing course.
Silver for immediate delivery was trading 2.5% higher at $32.62 an ounce at 1:05 p.m. in London, while gold was up 0.9% at $2,681.77.
Silver prices remain well below their all-time high of nearly $50 set in 2011.
What is known about the collapse of the shares of the world's largest companies this summer
Dozens of the world's largest companies lost hundreds of billions of dollars on August 5 due to the fall of global stock markets. The reason for the sharp collapse was growing fears about a possible recession in the US, due to which investors began to get rid of securities and other assets en masse.
The stock market in the USA opened in the red zone. Against this background, the value of Nvidia and Apple decreased by 14% and 8%, respectively. Among the leaders of the decline were also Microsoft and Citigroup.
On August 2, the US reported unexpectedly weak employment data, which increased fears about an upcoming recession. This situation forced investors to dump shares.
Against this background, gold again jumped sharply in price and approached a record high. This came amid expectations that the Federal Reserve will soon start cutting interest rates.
